2016-11-14T07:54:37-06:00 2015-12-31 GRANT THORNTON LLP 75 STATE STREET BOSTON MA 02109 990 2015-01-01 050296998 Delta Dental of Rhode Island % GEORGE BEDARD DELT 4017526000 10 Charles Street Providence RI 02904 RICHARD A FRITZ VP Finance & CFO 4017526000 2016-11-09 true Robert J Butler Jr P00037953 6177237900 2016-11-09 2015 2017-02-10 21:41:12Z JOSEPH NAGLE 10 Charles Street Providence RI 02904 233078487 false X www.deltadentalri.com X 1959 RI to provide cost effective group dental insurance to the rhode island business communities. 15 14 58 0 0 0 0 0 192230670 196524961 2324689 3147829 167584 169621 194722943 199842411 1547361 545271 168200203 177440293 10407455 11724651 0 0 0 10159375 9070969 190314394 198781184 4408549 1061227 110755768 107812958 18706502 18698122 92049266 89114836 Our mission is to deliver impeccable service, quality and innovation that exceeds expectations. As experts in oral health care, we are committed to accessible, affordable care that drives improved health outcomes. false false 177985564 196374807 Dental Benefits for 579,866 members under 276,483 contracts. The Company offers a broad range of prepaid dental care coverage options and administrative services to organizations providing such benefits to their employees on a contributory or a noncontributory basis. 9128318 161224 Operations Expense Incurred To Administer The Payment of Dental Benefits. 187113882 false false false false false false false false false true true false false true true false true false false false false false false false false false true false true false false false false false false false true false false false false false true true true false true 16 0 true 58 true false false false false false false X 15 14 false false false false true true true true true false false true true true true true true true true false X GEORGE BEDARD 4017526240 10 CHARLES STREET Providence RI 02904 William A Mekrut CHAIR 1.0 1.0 X X 14700 0 0 Fred K Butler Vice Chair 1.0 1.0 X X 8500 0 0 A Thomas Correia DDS Dir. (THRU 2/15) & dental dir. 1.0 1.0 X 54363 0 0 Julie G Duffy Director 1.0 1.0 X 6000 0 0 Francis J Flynn Director 1.0 1.0 X 6500 0 0 William G Foulkes Director 1.0 1.0 X 1000 0 0 Almon C Hall Director 1.0 1.0 X 7500 0 0 Edward O Handy III Director 1.0 1.0 X 7500 0 0 Steven J Issa Director 1.0 1.0 X 9200 0 0 Joseph J Marcaurele Director 1.0 1.0 X 7000 0 0 Linda R McGoldrick Director 1.0 1.0 X 7500 0 0 James F McManus DDS Director 1.0 1.0 X 7500 0 0 Cynthia S Reed Director 1.0 1.0 X 8500 0 0 John T Ruggieri Director 1.0 1.0 X 8000 0 0 Edwin J Santos Director 1.0 1.0 X 10400 0 0 Vanessa Toledo-Vickers Director 40.0 1.0 X 6500 0 0 Joseph Nagle President & CEO 40.0 1.0 X 792565 0 136351 Richard A Fritz VP Finance, CFO & TREASURER 40.0 1.0 X 309201 0 57786 Kerrie L Bennett VP Marketing & Secretary 40.0 1.0 X 210838 0 28554 George J Bedard Controller & Asst. Treasurer 40.0 1.0 X 142507 0 34700 Melissa A Gennari Director Compliance & Asst Sec 40.0 1.0 X 129110 0 13690 Thomas D Chase VP Technology & CIO 40.0 1.0 X 0 341563 57847 Joseph R Perroni VP Sales-Dental & Altus Dental 40.0 1.0 X 297726 0 49398 Blaine R Carroll VP Strategic Initiatives 40.0 1.0 X 251086 0 47762 Angelo Pezzullo VP Sales 40.0 1.0 X 177049 0 39913 Ellen M Hendrix AVP Underwriting 40.0 1.0 X 156600 0 38325 Timothy Fitzgibbons Sr. Director Actuarial 40.0 1.0 X 158361 0 32239 Keith Whitt Director of Sales 40.0 1.0 X 148969 0 35133 Duane S Easter Director of Corp Reporting 40.0 1.0 X 132601 0 34999 3077276 341563 606697 18 false true false NETCENERGY LLC 231 ELM STREET WARWICK RI 02888 IT CONSULTING 905120 DUFFY SHANLEY Inc 10 CHARLES STREET PROVIDENCE RI 02904 MARKETING SERVICES 754816 Cathedral Corporation Griffin Technology Park ROME NY 13441 PROCESSING SERVICES 466423 EDGEWATER TECHNOLOGY INC PO BOX 845183 BOSTON MA 022845183 Product Development 453720 GRANT THORNTON LLP 90 State House Square 10th Floor HARTFORD CT 06103 AUDIT/TAX SERVICES 267386 25 0 PREMIUMS 524114 196524961 196524961 196524961 1879542 1879542 0 0 0 0 0 34504363 33236076 1268287 1268287 1268287 0 0 0 INCOME FROM SUBSIDIARY 900099 158551 158551 OTHER INCOME 900099 11070 11070 169621 199842411 196536031 3306380 545271 545271 0 0 177440293 177440293 2671937 2671937 0 7639927 5304582 2335345 376897 310710 66187 341685 217704 123981 694205 335628 358577 0 223176 223176 284634 284634 60000 60000 0 831462 831462 2292914 605662 1687252 443528 443528 955069 721915 233154 0 0 793473 414587 378886 105170 5556 99614 0 13893 13893 0 0 1023470 1023470 142193 142193 EQUIPMENT RENTAL & MAINT 1141325 1141325 ASSOCIATION FEES 412188 9174 403014 TELEPHONE 293486 293486 LICENSES & FEES 22931 22931 32057 1475 30582 198781184 187113882 11667302 0 250 250 6872444 -1358237 0 0 10623329 11805775 0 0 0 0 0 0 0 0 587705 2714640 11290466 9723954 1865069 1566512 80294046 80960681 9871073 10344305 0 0 0 0 641852 1779032 110755768 107812958 12389841 11594232 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6316661 7103890 18706502 18698122 X 0 0 0 0 92049266 89114836 92049266 89114836 110755768 107812958 X 1061227 -1325866 -2669791 X false true X true false 2689561 2328789 360773 5691304 4660762 1030541 2909601 2734403 175198 1566512 SUBSIDIARIES 7965026 C INVESTMENT-OTHER 2379279 F 10344305 0 CLAIMS INCURRED BUT UNPAID 4872000 ADVANCED SUBSCRIBER PREMIUMS 1392506 ACCRUED CLAIMS ADJUSTMENT EXPENSE 430738 ADVANCED DEPOSITS 408646 7103890 X ASC 470 SCHEDULE D, PART X Delta Dental of Rhode Island is a not-for-profit corporation pursuant to Section 501(c)(4) of the Internal Revenue Code (IRC) and is generally exempt from federal income taxes on related income under Section 501(a) of the IRC and, accordingly, no provision for income taxes relative to Delta Dental of Rhode Island has been made in the accompanying consolidated financial statements. The Company evaluates its uncertain tax positions with a two-step process in accordance with GAAP. First, the Company determines whether it is more likely than not that an uncertain tax position will be sustained upon examination based on the technical merits of the position. Second, an uncertain tax position that meets the more likely than not threshold is measured to determine the amount of benefit to recognize in the financial statements. The position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Uncertain tax positions that previously failed to meet the more likely than not recognition threshold are recognized in the first subsequent reporting period in which the threshold is met. Previously recognized uncertain tax positions that no longer meet the more likely than not recognition threshold are derecognized in the first subsequent reporting period in which the threshold is no longer met. Should interest or penalties be assessed, such expenses would be reflected in selling, general and administrative expenses. As of December 31, 2015 and 2014, the Company had no uncertain tax positions. UNITED WAY OF RHODE ISLAND 50 VALLEY STREET PROVIDENCE RI 02909 050276059 501(C)(3) 28728 PROGRAM SUPPORT CVS CHARITY CLASSIC INC ONE CVS DRIVE WOONSOCKET RI 02895 050508742 501(C)(3) 26500 PROGRAM SUPPORT AMOS HOUSE 413 FRIENDSHIP STREET PROVIDENCE RI 02907 050387218 501(C)(3) 25250 PROGRAM SUPPORT MAKE A WISH MASSACHUSETTS ONE BULFINCH PLACE SUITE 201 BOSTON MA 02114 222867371 501(C)(3) 25000 PROGRAM SUPPORT SAN MIGUEL SCHOOL 525 BRANCH AVENUE PROVIDENCE RI 02904 223232973 501(C)(3) 21500 PROGRAM SUPPORT PROVIDENCE COLLEGE 1 CUNNING SQUARE PROVIDENCE RI 02908 050258932 501(C)(3) 25750 PROGRAM SUPPORT SALVE REGINA UNIVERSITY 100 OCHRE POINT AVENUE NEWPORT RI 02840 050259080 501(C)(3) 16750 PROGRAM SUPPORT CROSSROADS RHODE ISLAND 160 BROAD STREET PROVIDENCE RI 02903 050259094 501(C)(3) 15500 PROGRAM SUPPORT MCAULEY MINISTRIES 622 ELMWOOD AVENUE PROVIDENCE RI 02907 050440470 501(C)(3) 12250 PROGRAM SUPPORT RHODE ISLAND FOUNDATION - CIVIC LEADERSHIP FUND ONE UNION STATION PROVIDENCE RI 02914 222604963 501(C)(3) 11000 PROGRAM SUPPORT AMY GALLAGHER FOUNDATION 180 EAST SHORE ROAD JAMESTOWN RI 02835 475609593 501(C)(3) 10000 PROGRAM SUPPORT CITY YEAR INC 77 EDDY ST 2ND FLOOR PROVIDENCE RI 02903 222882549 501(C)(3) 10000 PROGRAM SUPPORT FIRST WORKS 270 WESTMINSTER STREET PROVIDENCE RI 02903 222597014 501(C)(3) 10000 PROGRAM SUPPORT LEARNING COMMUNITY 21 LINCOLN AVENUE CENTRAL FALL RI 02863 470942849 501(C)(3) 10000 PROGRAM SUPPORT RHODE ISLAND COMMUNITY FOOD BANK 200 NIANTIC AVENUE PROVIDENCE RI 02907 050395601 501(C)(3) 10000 PROGRAM SUPPORT STATION FIRE MEMORIAL FOUNDATION 20 HALL STREET EAST GREENWICH RI 02818 562382562 501(C)(3) 10000 PROGRAM SUPPORT FAMILY SERVICE OF RHODE ISLAND 55 HOPE STREET PROVIDENCE RI 029046688 050258858 501(C)(3) 9000 PROGRAM SUPPORT JOHNSON & WALES UNIVERSITY 8 ABBOT PARK PLACE PROVIDENCE RI 02903 050306206 501(C)(3) 8500 PROGRAM SUPPORT JEFFREY OSBORNE CELEBRITY CLASSIC PO BOX 27815 PROVIDENCE RI 02907 050510492 501(C)(3) 7500 PROGRAM SUPPORT JUNIOR ACHIEVEMENT 120 WATERMAN STREET PROVIDENCE RI 02906 050263443 501(C)(3) 7500 PROGRAM SUPPORT RHODE ISLAND HOSPITAL FOUNDATION PO BOX H PROVIDENCE RI 02901 050468736 501(C)(3) 7500 PROGRAM SUPPORT SPECIAL OLYMPICS RHODE ISLAND 370 G WASHINGTON HWY SMITHFIELD RI 02917 050377867 501(C)(3) 7000 PROGRAM SUPPORT ROCKY HILL SCHOOL 530 IVES ROAD EAST GREENWICH RI 02818 050277258 501(C)(3) 6065 PROGRAM SUPPORT BRYANT UNIVERSITY 1150 DOUGLAS TURNPIKE SIMTHFIELD RI 02908 050258810 501(C)(3) 6000 PROGRAM SUPPORT OCEAN STATE JOB LOT CHARITABLE 375 COMMERCE PARK ROAD KINGSTOWN RI 02852 200959438 501(C)(3) 6000 PROGRAM SUPPORT LITTLE SISTERS OF THE POOR 964 MAIN STREET PAWTUCKET RI 02860 050283791 501(C)(3) 5350 PROGRAM SUPPORT TOMORROW FUND 593 EDDY STREET PROVIDENCE RI 02903 050450569 501(C)(3) 5100 PROGRAM SUPPORT 27 Schedule I, Part I, Line 2 The Company does not issue specific grants, however, as part of THE corporate responsibility program, DELTA DENTAL OF RHODE ISLAND supports local charitable organizations. X X true true X X X X X false true false false true true false false false Joseph Nagle President & CEO 578186 0 140285 0 74094 0 115986 0 20365 0 928916 0 0 0 Richard A Fritz VP Finance, CFO & TREASURER 284307 0 22136 0 2758 0 38413 0 19373 0 366987 0 0 0 Kerrie L Bennett VP Marketing & Secretary 201764 0 8640 0 434 0 19613 0 8941 0 239392 0 0 0 George J Bedard Controller & Asst. Treasurer 129635 0 11738 0 1134 0 16364 0 18336 0 177207 0 0 0 Thomas D Chase VP Technology & CIO 0 311071 0 28877 0 1615 0 40034 0 17813 0 399410 0 0 Joseph R Perroni VP Sales-Dental & Altus Dental 254902 0 35976 0 6848 0 31585 0 17813 0 347124 0 0 0 Blaine R Carroll VP Strategic Initiatives 219463 0 30513 0 1110 0 27264 0 20498 0 298848 0 0 0 Angelo Pezzullo VP Sales 145491 0 24242 0 7316 0 22516 0 17397 0 216962 0 0 0 Ellen M Hendrix AVP Underwriting 140989 0 14935 0 676 0 18429 0 19896 0 194925 0 0 0 Timothy Fitzgibbons Sr. Director Actuarial 152290 0 5597 0 474 0 14423 0 17816 0 190600 0 0 0 Keith Whitt Director of Sales 135917 0 6225 0 6827 0 14097 0 21036 0 184102 0 0 0 Duane S Easter Director of Corp Reporting 118299 0 13940 0 362 0 14633 0 20366 0 167600 0 0 0 Gross-Up Payments Schedule J, Part I, Line 1a The CEO's employment agreement contains provisions for him to receive payments so that he can personally procure certain fringe benefits such as life insurance and long term disability policies that are otherwise available to all other employees. This additional income is grossed up to account for the tax impact of these payments and the gross-up is included in reportable compensation on Schedule J Part II Column (B)(iii). Health or Social Club Dues Schedule J, Part I, Line 1a The CEO is a member of a local business club. Reimbursement for use of this is exclusively for offsite employee meetings as well as business related meetings with individuals outside the company. The company maintains strict policies regarding substantiation and documentation for all business related expenses incurred. This benefit is NOT reported as taxable compensation. Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b The CEO participates in a 457(F) deferred compensation plan but has not met the vesting criteria and therefore no payments have been made to the CEO to date. Contributions of $62,886 made to the plan during 2015 have been reported on Schedule J Part II Column (C). Compensation contingent on revenues of related organizations Schedule J, Part I, Line 5b The CEO has an incentive bonus opportunity for up to 15% of his base pay should certain goals be attained. Goals are established annually and for the tax year 2015, one of these goals is based on the revenues of a wholly-owned subsidiary of the company. This particular goal has a weighting of 10% of the total incentive bonus opportunity. The percentage of the bonus reported on Schedule J, Part II, Column (B)(ii) contingent on the revenues of the wholly-owned subsidiary is equal to 1.5% of the CEO's base pay. Compensation contingent on net earnings of the organization Schedule J, Part I, Line 6a The company maintains an annual incentive program that is allocated to all applicable employees, including all individuals listed on Form 990, if the company meets certain board approved corporate financial goals, including meeting enrollment levels, control of operating expenses, and overall profitability. A Thomas Correia DDS Inc Correia - Board Member 542817 Payment to Dental Practice false MCMANUS PRATT McManus - Board Member 903027 Payment to Dental Practice false Business Transactions Involving Interested Persons Part IV The organization engages in transactions with dental practices of whom the board members identified in Schedule L Part IV have a controlling interest. The transactions are entered into in the ordinary course of business and at fair market value. Transactions with these entities are subject to the same procedures and review as all dental practices. MEMBERS OF THE ORGANIZATION FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS 73 CORPORATE MEMBERS. MEMBERS THAT MAY ELECT THE GOVERNING BODY Form 990, Part VI, section a, LINE 7a The corporate members meet annually to approve any by-law changes and to elect individuals to the 15 member board of directors which is the organization's governing body. All 15 members of the board of directors also serve as representatives of the corporate members. DECISIONS OF THE GOVERNING BODY SUBJECT TO APPROVAL BY MEMBERS Form 990, Part VI, section a, LINE 7b The members of the corporation, at the annual meeting, shall elect directors of the corporation that have been proposed by the board of directors and shall approve amendments or alterations of the by-laws proposed by the board of directors. FORM 990 REVIEW PROCESS Form 990, Part VI, Section B, Line 11 THE ANNUAL FORM 990 IS PREPARED BY GRANT THORNTON LLP, THE COMPANY'S TAX ADVISOR AND INDEPENDENT AUDITOR, USING INFORMATION PROVIDED BY DELTA DENTAL OF RHODE ISLAND. AFTER PREPARATION AND REVIEW OF THE RETURN BY GRANT THORNTON, THE DRAFT is REVIEWED BY Delta Dental's FINANCE DEPARTMENT AND MANAGEMENT, INCLUDING THE CONTROLLER, CFO, AND CEO AS NECESSARY. THE COMPLETE FORM 990 IS THEN PROVIDED TO EACH MEMBER OF THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. CONFLICT OF INTEREST POLICY Form 990, Part VI, section b, LINE 12c All W-2 employees, interns, temps, dental consultants, and board members complete an annual conflict of interest questionnaire. The review process for complete questionnaires containing disclosures is as follows: For W-2 employees, interns, and temps, disclosures are reviewed by the director of compliance and CFO. Disclosed potential conflicts are discussed and may be elevated in the review process to the CEO and external legal counsel for advice. Any required actions are immediately implemented in accordance with the company's documented conflict of interest policies. For the CEO and CFO, disclosures are reviewed by external legal counsel. Legal counsel advises of any required actions which are immediately implemented in accordance with the company's documented standards of conduct and business ethics and conflict of interest policies. For dental consultants, disclosures are reviewed by the director of compliance, the VP-CFO, the director of program integrity and network management, and the VP-CIO. All conflicts are discussed and may be elevated to external legal counsel for advice. Any required actions are immediately implemented in accordance with the company's documented conflict of interest policies. For board members, disclosures are reviewed by external legal counsel. Legal counsel prepares a written memorandum for presentation to board members with the results of the review. All conflicts are discussed and any required actions are immediately implemented in accordance with the company's documented conflict of interest policies. In the case of a conflict, immediate and appropriate action is taken in accordance with the company's policies. Persons with a conflict are recused from discussions and do not vote on resolutions that pertain directly to their conflict. COMPENSATION POLICY Form 990, Part VI, SECTION B, LINE 15 The board of directors elects independent members to serve on its compensation committee which is responsible for setting the CEO's compensation and approving pay ranges for the various job tracks within the company as well as approving any fringe benefits. The company and the committee annually contract with independent compensation consultants to help determine appropriate pay ranges and fringe benefits such as health and other insurances and retirement and other benefits. Comparable data is used to determine whether compensation is consistent with similar organizations. Recommendations for the CEO's compensation are made by the compensation committee to the board of directors for review and approval. The review and approval process is contemporaneously documented in the minutes of both the compensation committee and the board of directors. PUBLIC DISCLOSURE Form 990, Part VI, SECTION C, LINE 19 The company's governing documents, such as bylaws and corporate charter, are available upon request from the company and can also be obtained from the secretary of state's office within the state of Rhode Island. The company's conflict of interest policy, as well as the company's audited financial statements, are also available upon request at the company's headquarters. Additionally, all statutory filings completed by the company are available through the insurance division within the Rhode Island department of business regulation. The company's Form 990 is also posted on www.guidestar.org. Director COMPENSATION Form 990, Part VII, Section A A. Thomas Correia, DDS, served on the Board of Directors for Delta Dental of Rhode Island until February 13, 2015 when he was hired as an employee. Reportable compensation reported on 990 Part VII column D properly reflects reasonable compensation for services rendered as a Director of $4,000 and compensation as an employee of $50,363. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 9 ALTUS VENTURES, INC. WAS SETUP and capitalized IN JUNE OF 2014. The company transferred an additional $3,000,000 of capital to Altus Ventures, Inc. in 2015. Also included in line 9 is an adjustment of ($330,209) for overaccrued expenses related to a joint venture with other delta dental plans. TOTAL OTHER CHANGES IN NET ASSETS EQUAL ($2,669,791). Altus Realty Company 10 Charles Street Providence RI 029042208 030396397 Holding Co. RI 501(C)(2) N/A DDRI true The Altus Group Inc 10 Charles Street Providence RI 02904 050502610 Insurance RI DDRI C Corp 0 0 1.00000 true ALTUS DENTAL INC 10 CHARLES STREET PROVIDENCE RI 02904 050502612 INSURANCE RI ALTUS GROUP INC C CORP 0 0 1.00000 true ALTUS VENTURES INC 10 CHARLES STREET PROVIDENCE RI 02904 465627174 VENTURE CAPITAL RI ALTUS GROUP INC C CORP 0 0 1.00000 true ALTUS DENTAL INSURANCE CO INC 10 CHARLES STREET PROVIDENCE RI 02904 050513223 INSURANCE RI ALTUS GROUP INC C CORP 0 0 1.00000 true ALTUS SYSTEMS INC 10 CHARLES STREET PROVIDENCE RI 02904 050502611 INSURANCE RI ALTUS GROUP INC C CORP 0 0 1.00000 true true true false true false false false false false false true true true true true false false false false Altus Dental Insurance Co Inc A(IV) 308550 FMV Altus Dental Inc A(I) 89041 FMV Altus Realty Inc A(I) 67373 FMV Altus Ventures Inc B 3000000 FMV Altus Realty Inc D 3060978 FMV Altus Realty Inc K 793474 FMV Altus Systems Inc L 5397619 FMV Altus Dental Insurance Co Inc M 925651 FMV Altus Dental Insurance Co Inc o 969730 fmv